Under Armour, Inc. saw fiscal third quarter net sales slide 6.0 percent, or 7 percent in currency-neutral (CN) terms, to $1.49 billion in the period ended December 31.

  • Wholesale revenue decreased 13.2 percent to $711.7 million;
  • DTC revenue increased 3.5 percent to $740.5 million due to a 5 percent increase in owned and operated store revenue and a 2 percent increase in e-commerce revenue, representing 45 percent of the total direct-to-consumer business in the quarter;
  • North America revenue decreased 11.8 percent to $915.4 million;
  • International revenue increased 7.0 percent (+4 percent CN) to $566 million;
    • EMEA revenue increased 7.1 percent (+2 percent CN) to $284.0 million.
    • Asia-Pacific grew 7.1 percent (+8 percent CN) to $212.0 million.
    • Latin America increased 9.4 percent (+3 percent CN) to $69.8 million.
  • Apparel revenue decreased 5.5 percent to $1.02 billion;
  • Footwear revenue was down 6.6 percent to $331.0 million;
  • Accessories revenue was down o.3 percent to $104.5 million.

Net Income was $114 million, or 7.7 percent of net revenues. In the fourth quarter, compared to $121. 6 million, or 7.7 percent of net revenues, in the prior-year quarter. Excluding a $50 million earn-out benefit in connection with the sale of the MyFitnessPal platform, the litigation reserve expense, and related tax impacts, the Adjusted net Income was $84 million.

Diluted EPS was 26 cents a share, compared to 27 cents per share in the prior-year quarter. Adjusted diluted EPS was 19 cents a share.

Inventory was down 9 percent to $1.1 billion at quarter-end.

Cash and Cash Equivalents were $1 billion at the end of the quarter, and no borrowings were outstanding under the company’s $1.1 billion revolving credit facility.

Share Buyback Update
Under Armour repurchased $25 million of its Class C common stock during the third quarter, reflecting 3.1 million shares retired. As of December 31, 2023, 45.6 million shares for $500 million had been repurchased, which concluded the company’s two-year program, approved by the Board of Directors in February 2022.

Image courtesy Under Armour

For more details from Under Armour’s third quarter and their look ahead to Q4, see more SGB Media coverage here:

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